Interest Rates, Prices, Tax Credits Spur Strong Home Sales in Santa Clara County

SAN JOSE, Calif., May 10 /PRNewswire/ -- Santa Clara County home sales continued to surge in April as buyers rushed to take advantage of low interest rates, affordable prices, and federal and state homebuyer tax credits.  

Buyers and sellers closed sales on 1,285 homes last month, including single family residences, townhouses and condos, according to data from MLSListings Inc. It represented a 3.71 percent increase from March and a 9.55 percent rise from the same month of last year. The average sales price stood at $685,061, 5.86 percent higher from March and 27.30 percent higher from the same month of last year.

"Although the federal and state tax credits contributed to the recent home buying activity, concerns that interest rates may rise and prices may eventually go up to where they were two or three years ago are fueling an undercurrent of demand," said Karl Lee, president of the Santa Clara County Association of REALTORS®. "We have had consecutive months of rising average prices in most Santa Clara County communities. We expect this trend to continue."

In April 6,029 homes were on the market, 7.93 percent higher than March but 9.35 percent lower than the same month of last year.

"We need more homes on the market to satisfy the consumer appetite," Lee said. "Sellers who present their homes attractively through price and condition are getting multiple offers."

The federal homebuyer tax credit expired on April 30. The California first-time homebuyer tax credit is not expected to last long. The $100 million allocated for homebuyers purchasing existing homes is projected to run out in May. The $100 million allocated for homebuyers buying new homes may last only through the summer.

SCCAOR President Karl Lee can be reached for comments at [email protected] or 408.205.1726.

About the Santa Clara County Association of REALTORS®

SCCAOR, established in 1896, is California's oldest and Northern California's largest real estate association. We represent 7,000 REALTORS® and affiliate members. SCCAOR exists to meet the business, professional and political needs of its members and to promote, protect homeownership and private property rights.

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SOURCE Santa Clara County Association of REALTORS

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